TSX advances across all sectors
Aug 23, 2013 / 8:31 am
The Toronto stock market registered a solid gain for a second session Friday as investors built on strong manufacturing data from China and Europe.
However, there was some disappointment with a much weaker than expected report on U.S. home sales.
The S&P/TSX composite index gained 82.44 points to 12,756.79.
The Canadian dollar continued to slide, down another 0.3 of a cent to 94.79 cents US, as Statistics Canada said the July consumer price index came in at an annualized rate of 1.3 per cent, up from 1.2 per cent in June.
Economists had looked for Canada's inflation rate to rise by two-tenths of a point to 1.4 per cent.
The loonie has tumbled about two U.S. cents this past week as the American dollar rose against other currencies amid growing conviction that the U.S. Federal Reserve will move this year to cut back on its monetary stimulus.
The Fed has been buying US$85 billion of bonds every month in a measure known as quantitative easing to keep rates low and encourage investment. There is still a great deal of doubt about when the Fed might embark on tapering its asset purchases and the pace of such a cutback.
U.S. indexes largely shed early, minor gains after the U.S. Commerce Department said new-home sales dropped 13.4 per cent during July to a seasonally adjusted annual rate of 394,000. That’s down from a sales pace of 455,000 in June, which was revised sharply lower from a previously reported 497,000.
"The data may have markets reassessing U.S. growth and when (or by how much) the Fed will taper QE," said CIBC World Markets economist Andrew Grantham.
The Dow Jones industrials were 6.79 points lower to 14,956.95.
The Nasdaq climbed 11.67 points to 3,650.38, supported by a seven per cent rise in Microsoft shares after the software giant announced that CEO Steve Ballmer is retiring in the next 12 months. The S&P 500 index was up 0.83 of a point at 1,657.79.
The gold sector led TSX advancers, up 2.6 per cent while December bullion moved up $16.70 to US$1,387.50 an ounce. Iamgold (TSX:IMG) improved by 29 cents to C$6.96 while Barrick Gold Corp. (TSX:ABX) climbed 66 cents to $21.23.
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